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Entry
Mode
After careful consideration of the risk involved and the profit potential
in Mexico City, Futbol Mania has decided to enter the market as a wholly
owned subsidiary. The advantages of this entry strategy are that Futbol
Mania will realize all revenues and control global economies of scale.
Futbol Mania will have strategic coordination and will be able to protect
technology and skill base. The acquisition provides rapid market entry
into an established market (Deresky, 2003, p. 242).
Potential
Partner
Futbol Mania will initially manufacture and distribute soccer balls to
Mexico, using local distributor Grupo Marti (Grupo Marti, 2000). Grupo
Marti has an established distribution system, which includes sports recreation
centers, and a web page. They already sell other soccer products such
as Spalding, Nike, and Voit.
Futbol
Mania - P.O. Box 3811 - N. Ft. Myers, FL - 33918 - (239)590-0000 www.ciscorob.com/global
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